Judgment Interest Calculator

What Is the Judgment Interest Calculator?

The Judgment Interest Calculator computes the interest that accrues on court judgments from the entry date until the payment date. It uses the statutory interest rate applicable to the jurisdiction and supports both simple and monthly compounding methods to match state requirements.

Post-judgment interest is a critical component of judgment recovery. It ensures that the prevailing party receives full compensation by accounting for the time value of money during the collection period. Understanding how interest accrues helps both creditors and debtors in settlement negotiations and payment planning.

Different states apply different rates and calculation methods. This tool allows you to select your jurisdiction and compare simple vs. compound interest outcomes to ensure accurate compliance with local law.

Formula

Simple Interest = Judgment Amount × (Statutory Rate / 100) × (Days / 365)

Monthly Compound Total = Principal × (1 + (Rate / 100) / 12)^(12 × Years)

Total Judgment Due = Judgment Amount + Interest

Daily Interest Rate = (Judgment Amount × Statutory Rate / 100) / 365

Where Days is the number of days between the judgment date and payment date, and Years = Days / 365.

Example Scenario

Situation: A federal court judgment of $100,000 entered on January 15, 2024, with payment received on January 15, 2025. The federal statutory rate is 5% simple interest.

Calculation: Days = 365. Interest = $100,000 × 5% × (365/365) = $5,000. Daily Rate = ($100,000 × 0.05) / 365 = $13.70. Total Judgment = $100,000 + $5,000 = $105,000.

Detailed Breakdown

Frequently Asked Questions

What is judgment interest?

Judgment interest is the interest that accrues on a court judgment from the date it is entered until it is fully paid. It compensates the judgment creditor for the delay in receiving payment and is mandated by federal and state statutes.

How is judgment interest calculated?

Judgment interest is typically calculated as simple interest: Interest = Judgment Amount × Statutory Rate × (Days / 365). The total judgment equals the original amount plus accrued interest.

What is the federal statutory rate for judgment interest?

The federal post-judgment interest rate under 28 U.S.C. § 1961 is calculated using the weekly average 1-year constant maturity Treasury yield. The rate is set on the date of judgment and updated annually.

When does judgment interest start accruing?

Post-judgment interest begins accruing from the date the judgment is entered by the court. Pre-judgment interest accrues from the date of injury or loss until the judgment date. Both are recoverable.

How do I calculate daily judgment interest?

Daily interest = (Judgment Amount × Annual Rate) / 365. For a $100,000 judgment at 5%, daily interest = ($100,000 × 0.05) / 365 = $13.70 per day.

What is the difference between statutory and contractual interest?

Statutory interest is set by state or federal law and applies when no contractual rate is specified. Contractual interest is agreed upon in a contract and typically takes precedence over statutory rates.

How does state law affect judgment interest rates?

Each state sets its own judgment interest rate. Rates range from 5% to 12% annually. Some states use fixed rates, others use floating rates tied to the prime rate or Treasury yields.

What is the judgment interest rate in California?

California post-judgment interest is 10% per year. Pre-judgment interest in California is 7% for most cases. Both are simple interest unless otherwise specified by contract.

What is the judgment interest rate in New York?

New York has a statutory interest rate of 9% per year for both pre-judgment and post-judgment interest. This applies to most civil judgments, including breach of contract and personal injury.

What is the judgment interest rate in Texas?

Texas post-judgment interest is the prime rate plus 5%, with a minimum of 5% and maximum of 18%. Pre-judgment interest follows the same rate structure for most cases.

What is the judgment interest rate in Florida?

Florida uses a floating rate set at the federal prime rate plus 5%, adjusted annually on January 1. For 2024, the rate is approximately 8.5% depending on the prime rate.

How do I calculate interest for multiple judgments?

Each judgment accrues interest independently. Calculate interest separately for each judgment amount based on its specific entry date and rate. Total interest is the sum of all individual calculations.

What happens to interest when a judgment is partially paid?

Partial payments are applied first to accrued interest, then to principal. This ensures the creditor receives the time value benefit first, as required by the US Supreme Court in Ron Pair Enterprises.

Does judgment interest compound?

Most states use simple interest for judgments. A few states require annual compounding or allow compounding if specified in the underlying contract. Federal judgments use simple interest under 28 U.S.C. § 1961.

What is the interest on a default judgment?

Default judgments accrue interest at the same statutory rate as contested judgments. The interest runs from the default judgment entry date until full payment.

Can judgment interest be waived?

Yes, the judgment creditor can waive interest as part of a settlement or payment negotiation. Waiving interest may be used as an incentive for prompt payment or to avoid collection efforts.

How long does judgment interest accrue?

Judgment interest accrues until the judgment is fully satisfied. However, the underlying judgment may expire after 10-20 years depending on state law, and interest stops accruing if the judgment is no longer enforceable.

What is the interest rate for international judgments?

International judgments converted to U.S. dollars accrue interest at the rate specified in the original jurisdiction or the enforcement jurisdiction. Currency conversion rates also affect the total amount.

How do I calculate interest for a multi-year judgment?

For multi-year judgments, calculate interest annually or for the total period: Interest = Principal × Rate × Years. For 3 years on $100,000 at 5%: $100,000 × 0.05 × 3 = $15,000.

What is the judgment interest for consumer protection cases?

Some consumer protection statutes provide for enhanced interest rates or treble damages. Check specific statutes like the Truth in Lending Act or state consumer protection laws for applicable rates.

How do I claim judgment interest in court?

Interest should be requested in the complaint or petition. The judgment should specify the interest rate, start date, and calculation method. Post-judgment interest is typically awarded automatically by statute.

What is the rate for federal tax judgment interest?

Federal tax judgments use the IRS underpayment rate under 26 U.S.C. § 6621, which is the federal short-term rate plus 3%, compounded daily. This rate changes quarterly.

How does bankruptcy affect judgment interest?

Filing bankruptcy stops the accrual of judgment interest through the automatic stay. Interest may resume if the stay is lifted or the debt is determined to be non-dischargeable.

What is the judgment interest for wrongful death cases?

Wrongful death judgments accrue interest at the same statutory rate as other civil judgments. The interest period typically runs from the date of death or the date the complaint was filed.

How do I calculate interest on a judgment with offsets?

Calculate interest on the gross judgment amount. If the judgment is reduced by offset (comparative negligence, settlement credits), recalculate interest on the net amount from the original judgment date.

What is the difference between pre-judgment and post-judgment interest?

Pre-judgment interest runs from injury to judgment, compensating for pre-trial delay. Post-judgment interest runs from judgment to payment, compensating for post-trial delay. Different rates may apply.

Can I collect interest on a judgment from an insurance company?

Yes, if the judgment is covered by insurance, the insurer is typically liable for post-judgment interest up to policy limits. Some policies cover interest above limits if the insurer acted in bad faith.

What happens to interest if the judgment is appealed?

Interest continues to accrue during appeal. If the judgment is affirmed, post-judgment interest runs from the original judgment date. If modified, interest runs from the modified judgment date.

How is judgment interest calculated in class actions?

Class action judgments accrue interest on the total award. The interest is typically distributed pro rata to class members based on their individual share of the common fund.

What is the judgment interest rate for pro se litigants?

Pro se litigants receive the same judgment interest rate as represented parties. The rate is determined by statute, not by the party's representation status.

How do I enforce out-of-state judgment interest?

Out-of-state judgments are enforced through the Full Faith and Credit Clause. The interest rate of the rendering state applies, but enforcement procedures follow the forum state's rules.

What is a judgment interest calculator used for?

It is used by attorneys, creditors, and debtors to compute accrued interest on court judgments for payment calculations, settlement negotiations, and financial planning.

Can judgment interest be modified by the court?

Courts generally cannot modify the statutory interest rate, but can adjust the amount of principal or the period of accrual based on equitable considerations in certain cases.

Related Court & Litigation Calculators

External Resources

• US Courts — Official U.S. federal court system resources and fee schedules.
• Cornell LII - Civil Procedure — Federal Rules of Civil Procedure and court procedure resources.
• ABA - Litigation — American Bar Association litigation section resources.
• Nolo - Court Procedures — Court procedure guides and legal process explanations.
• FindLaw - Litigation — FindLaw litigation and court procedure resources.
• PACER — Public access to federal court electronic records and filing information.